The company has confirmed to All Things D that it is actively investigating several opportunities, and is in talks with several partners about gambling on the Internet.

A Zynga spokesperson provided this statement to AllThingsD:

“We build games and experiences that our players want and love. Zynga Poker is the world’s largest online poker game with more than 7 million people playing every day and over 30 million each month. We know from listening to our players that there’s an interest in the real money gambling market. We’re in active conversations with potential partners to better understand and explore this new opportunity.”

As with any new entrant in the space, Zynga will have to fulfill several requirements, meaning any major rollout is still months away.

The San Francisco-based social games maker will have to wade through a maze of state, national and international regulations. It will have to secure the correct licenses, and it also needs the right technology to make betting over the Internet secure.

For either of these last two requirements, a partnership or acquisition of an online gambling organization or other technology would make the most sense, instead of starting from scratch.

However, the effort could easily pay off.

Zynga was one of the first online gaming companies on Facebook, and continues to dominate the platform today. If it is able to get its toe in the door, just as the laws change in the U.S., it could be a leader yet again.

Back in October, Zynga first started showing broad interest in the casino category.

Zynga founder and CEO Mark Pincus announced at a press event that the company was going to launch Zynga Casino, which would serve as a single destination on Facebook to build off its strong brand in poker.

Its first new game, which has not launched yet, will be bingo.

Until now, the company’s efforts have been limited to building social and mobile games that are given away for free and monetized through the sale of virtual goods.

Getting users to make bets and part with real money could prove difficult, even for a company that has so many dedicated fans.

One thing Zynga has going for it is that social games are frequently compared to gambling because of their addictive nature — both lure consumers into spending a few more dollars to continue playing.

The casino genre has also been quietly racking up big numbers on Facebook.

Besides Zynga Poker, which is the most popular poker game on Facebook, and one of the company’s longest standing titles, there are many other sleeping giants. Sean Ryan, Facebook’s director of game partnerships, has even called them “unbelievable monsters.”

Said Ryan: “It turns out that people are completely okay winning virtual currency that they can never cash out.”

If players actually have the chance to win money, who knows the size of the opportunity?

A Facebook spokesperson said the company does not necessarily see a future for gambling on the social network. “We don’t have any plans to get into real-money gambling,” she said.

It’s unclear if that eliminates others from experimenting. In the meantime, it hasn’t stopped game makers from exploring the category or the concept.

Last week, Seattle-based Double Down Interactive, which was named by Facebook as one of the most popular game makers of 2011, was acquired by video poker giant International Game Technology for $500 million. It has 4.7 million monthly active users playing a variety of games, including blackjack, slots, video poker and roulette.

The deal closely followed Caesars Entertainment’s purchase of Playtika, an Israeli game company known for its Facebook title Slotomania. Caesars bought the company in two stages, the first of which was rumored to be purchased for up to $90 million.

Caesars, which filed to go public in November, declined to comment because it is currently in its quiet period.

However, some of its plans were revealed in a document filed with the Securities & Exchange Commission. It said its Caesars and World Series of Poker brands are dedicated to online gaming, and will take advantage of real-money gaming as it becomes legalized. Right now, Caesars Entertainment offers games “for fun” in jurisdictions where online gambling is not yet legal, but has identified the legalization of online poker in the U.S. as “the largest opportunity in online gaming in the near term.”

Still, the biggest hurdle is the law.

Internationally, several countries have permitted gambling for some time, and those areas represent the most immediate opportunities.

But there are signs of the U.S. beginning to open up, too. On the day before Christmas, the Department of Justice gave the online gambling community an early present, according to a blog post written by Nelson Rose, a professor and lawyer.

“President Barack Obama’s administration has just declared, perhaps unintentionally, that almost every form of intra-state Internet gambling is legal under federal law, and so may be games played interstate and even internationally,” Rose wrote.

Essentially, what the Justice Department did was to issue a new interpretation of the Wire Act of 1961. Under the new ruling, it interprets the act as only outlawing bets on sporting events — not all events and contests, according to an article in the San Francisco Chronicle.

With that clarification in place, it will now be up to every state to pass legislation outlining operating procedures. So far, Nevada and the District of Columbia have moved quickly to enact laws. To get other state laws passed could be a lengthy process, especially during an election year.

In the meantime, launching games only in Nevada and D.C. doesn’t represent the big opportunity everyone was hoping for.

To be competitive against Caesars and IGT, Zynga may have to partner or acquire companies that already have the licenses in place or the necessary expertise.

Some of the more obvious candidates include Bwin, which operates PartyGaming.com and is traded on the London Stock Exchange; Betfair, and other operators, like Bodog, Bet365 and 888.com. Many are based in the U.K. and handle a variety of casino games and sporting contests there.

The entrance into a new market, such as gambling, would take substantial resources, and Zynga has them thanks to its public offering. In December, it raised $1 billion, making it the largest Internet IPO since Google.

So, will Zynga be the next “unbelievable monster?” Clearly, it is willing to try.

The release of funds follows a number of denial-of-service attacks earlier this week that were aimed at the document-leaking site’s providers. Most of the providers are now refusing to work with WikiLeaks after the U.S. government accused it of being in possession of documents that were provided in violation of U.S. law.

Yesterday, WikiLeak’s founder Julian Assange was arrested and denied bail in London. He’s accused of sexual misconduct in Sweden.

While PayPal is releasing the residual funds to WikiLeaks, it is not reinstating the ability for it to receive donations.

PayPal was caught up in a brief media storm this morning, after PayPal’s VP of Platform Osama Bedier gave the impression at LeWeb in Paris that PayPal had cut off access to WikiLeaks because of direct pressure by the U.S. government.

PayPal now wants to set the record straight, and says that it reviewed its policies regarding WikiLeaks after the U.S. Department of State publicized a letter stating that WikiLeaks may be in possession of documents that were provided in violation of U.S. law. The letter was published, and not sent to PayPal directly.

“PayPal was not contacted by any government organization in the U.S. or abroad. We restricted the account based on our Acceptable Use Policy review,” writes PayPal’s General Counsel John Muller. “Ultimately, our difficult decision was based on a belief that the WikiLeaks website was encouraging sources to release classified material, which is likely a violation of law by the source.”

Further, the company disclosed that twice before–in 2008 and 2009–PayPal reviewed and restricted the account associated with WikiLeaks “for reasons unrelated to our Acceptable Use Policy. As soon as proper information was received from the account holder, the restrictions were lifted.”

PayPal has been one of many providers that have been the victim of computer attacks, where servers were inundated with traffic. A spokesperson told us that it mostly affected the company’s blog site, and did not directly affect its payments services.

Other affected companies include MasterCard and Swiss bank PostFinance, The Wall Street Journal reports. No one is yet claiming responsibility for the attacks, but some say they are being organized by the ad hoc “Operation Payback.”

The General Services Administration–which oversees government procurement–will soon become the first major federal office to move to cloud-based email and calendar apps on an agency-wide basis. And it’s chosen Google Apps to do it.

A hard-won victory for Google, which beat out Microsoft for the $6.7 million five-year contract, leaving the folks up in Redmond more than a little peeved to see Office’s ubiquity in government threatened in this way.

“We are disappointed in the GSA’s internal e-mail decision,” the company said in a post to its “Why Microsoft” blog, adding that it is nonetheless “gratified that so many federal, state & local governments have chosen Microsoft to meet their business needs.”

You can almost hear the gritting teeth, can’t you? The horror of 15,000 GSA employees all using Gmail….

So again, a coup for Google, which has been working hard to push its cloud computing suite of messaging and collaboration apps to the government.

Interestingly, sources close to the negotiations tell me that the RFP (Request for Proposal) for the GSA contract was amended midway through the process to allow for offshoring of government data outside the United states–as an accommodation for Google.

Which is odd, because you’d think that if the United States government is embracing cloud computing, it would prefer the clouds in which its data is stored to be within its own borders. That Google requested and was granted the option to store GSA data offshore isn’t necessarily troubling (it must meet GSA security requirements regardless), but it is…interesting.

Google wouldn’t tell me the reason for its request, although I’ve heard it may have something to do with how the company segregates data and apps geographically. It was, however, quick to insist that it isn’t planning to offshore any U.S. government data entrusted to it–at least, currently.

Said spokesman Andrew Kovacs, “The government’s starting with Gmail and Calendar, and their data will be stored in a segregated system located in the continental United States that is exclusively for our government customers.”

And Arik Hesseldahl (pictured here) makes it four.

New reporters and bloggers for All Things Digital, that is.

The well-known tech writer–based in New York–will be covering the enterprise arena, as well as chips, for us.

As most regular readers know, this site has been expanding its staff, adding even more top-notch editorial might to our already terrific work.

That includes Ina Fried on mobile, Liz Gannes on social and Tricia Duryee on e-commerce.

All are key areas of tech coverage for ATD, obviously. But, as we thought about it, it was clear that there was not nearly enough cutting-edge tech journalism going on in the enterprise space.

It’s an important topic, involving a range of companies, such as Cisco, Microsoft, Oracle, Hewlett-Packard, IBM and a spate of interesting start-ups. And, did you hear Google’s moving into enterprise?

While all the attention in the tech press is usually focused on the latest minor innovation from Facebook or some other Silicon Valley phenom, enterprise is also a hotbed of change and disruption, as businesses seek to understand and adapt to what digital technologies mean to them.

Thus, we turned to Arik, who has a long history covering a wide range of beats in tech.

He’s most recently been working for Bloomberg Businessweek, where for five years he covered it all: PCs, consumer electronics and semiconductors.

He was also the third person to write Businessweek.com’s popular “Byte of the Apple” column, and contributed to a companion blog of the same name.

Before joining Businessweek, Arik spent five years at Forbes.com, covering pretty much every aspect of tech, writing a daily column called “Ten O’Clock Tech,” a daily survey of a single new tech product that predated properties like Engadget and Gizmodo.

Before that, he cut his tech teeth learning all there was to know about the chip industry as a reporter for a now-defunct trade newspaper called Electronic News, which is notable for being the place where the phrase “Silicon Valley” was first used in print.

One Friday in March, 2000, in fact, he actually got to say “Stop the presses” to editors in San Jose, Calif., as the paper was being put to bed, with the dramatic news that AMD would the following Monday announce its first chip to run at the then-blistering speed of 1GHz.

The story was flashed to subscribers of a daily fax newsletter–quaint, no?–that night before tearing out that issue’s front page. Previously, chip speeds were measured in Megahertz.

Arik attended the University of Oregon, and is originally from that state. After a two-year stint reporting for a daily newspaper in Idaho, he moved to New York to attend graduate school at Columbia University.

He has been a New Yorker ever since. When not working, he can often be found catching a jazz show at the Village Vanguard.

And Arik Hesseldahl (pictured here) makes it four.

New reporters and bloggers for All Things Digital, that is.

The well-known tech writer–based in New York–will be covering the enterprise arena, as well as chips, for us.

As most regular readers know, this site has been expanding its staff, adding even more top-notch editorial might to our already terrific work.

That includes Ina Fried on mobile, Liz Gannes on social and Tricia Duryee on e-commerce.

All are key areas of tech coverage for ATD, obviously. But, as we thought about it, it was clear that there was not nearly enough cutting-edge tech journalism going on in the enterprise space.

It’s an important topic, involving a range of companies, such as Cisco, Microsoft, Oracle, Hewlett-Packard, IBM and a spate of interesting start-ups. And, did you hear Google’s moving into enterprise?

While all the attention in the tech press is usually focused on the latest minor innovation from Facebook or some other Silicon Valley phenom, enterprise is also a hotbed of change and disruption, as businesses seek to understand and adapt to what digital technologies mean to them.

Thus, we turned to Arik, who has a long history covering a wide range of beats in tech.

He’s most recently been working for Bloomberg Businessweek, where for five years he covered it all: PCs, consumer electronics and semiconductors.

He was also the third person to write Businessweek.com’s popular “Byte of the Apple” column, and contributed to a companion blog of the same name.

Before joining Businessweek, Arik spent five years at Forbes.com, covering pretty much every aspect of tech, writing a daily column called “Ten O’Clock Tech,” a daily survey of a single new tech product that predated properties like Engadget and Gizmodo.

Before that, he cut his tech teeth learning all there was to know about the chip industry as a reporter for a now-defunct trade newspaper called Electronic News, which is notable for being the place where the phrase “Silicon Valley” was first used in print.

One Friday in March, 2000, in fact, he actually got to say “Stop the presses” to editors in San Jose, Calif., as the paper was being put to bed, with the dramatic news that AMD would the following Monday announce its first chip to run at the then-blistering speed of 1GHz.

The story was flashed to subscribers of a daily fax newsletter–quaint, no?–that night before tearing out that issue’s front page. Previously, chip speeds were measured in Megahertz.

Arik attended the University of Oregon, and is originally from that state. After a two-year stint reporting for a daily newspaper in Idaho, he moved to New York to attend graduate school at Columbia University.

He has been a New Yorker ever since. When not working, he can often be found catching a jazz show at the Village Vanguard.

A 2005 California law bans those under 18 from buying or renting violent videogames that appeal to “a deviant or morbid interest in minors.” Lower courts struck down the law, under precedent authorizing government to restrict youth from only one type of material, obscene sexual content.

In seeking the law’s reinstatement, Zackery Morazzini, a deputy state attorney general, told the court: “California is no less concerned with a minor’s access to the deviant level of violence that is presented in a certain category of video games” than it is with sexually explicit material.

Read the rest of this post on the original site

After all Meg Whitman’s moneybagging and all those demon sheep thrown by Carly Fiorina, polls right now are showing that it is unlikely either of them is going to emerge victorious in tomorrow’s elections in California.

While the pair might pull it out, given how the GOP is surging this election cycle, most expect them not to do so.

Whitman has handed over a giant pile of her eBay-generated fortune in an attempt to be the Republican governor of the Golden State, which seemed to have been working–until it didn’t.

In fact, it seems as if her wealth–and various controversies around it, such as IllegalMaidGate–has diminished her efforts to paint herself as CEO of California.

While she was way up over the summer over Democratic rival Jerry Brown, she has been trailing him recently.

And, although the race has tightened up, surveys show Brown is still ahead, such as a Rasmussen Reports survey that showed him up 49 percent to Whitman’s 45 percent.

In the Senate contest, former Hewlett-Packard CEO Fiorina seems to be more certainly headed for defeat.

A new Field Research poll gives Democratic incumbent Barbara Boxer 49 percent to Fiorina’s 41.

And while both candidates drastically oversold their business credentials as just the thing the troubled state needs, it seems the magic of tech in California does not necessarily transfer to voter enthusiasm quite so neatly.

But, let’s not end this election without another look at the infamous–and accidentally hysterical–”Demon Sheep” television ad by Fiorina against her GOP-nomination opponent Tom Campbell.

That video is followed by a very funny rejoinder, “Demon Sheep II: The Fleecing of California.”

Enjoy:

The question is: Which movie was Facebook CEO Mark Zuckerberg thinking about when he decided recently to fork over $100 million to public schools in Newark, New Jersey?

Was it a bid to spiff up his image–with a splashy announcement on Oprah Winfrey’s popular television talk show tomorrow?

That would be the very same day of the New York premiere of “The Social Network,” a movie that rakes the now-26-year-old Silicon Valley wunderkind over some very hot coals in the sordid tale of how he founded the powerful social networking site while at Harvard University.

Or was it actually the impact of another film, “Waiting for Superman,” a just-released gripping documentary about the crisis in public education?

It’s become a topic that has apparently become of great interest to Zuckerberg, as he has been considering his approach to big-time philanthropy in anticipation of huge wealth after Facebook eventually has its long-anticipated IPO.

In fact, said sources, the timing of the donation was hotly debated within the company, with worries that it would look like Zuckerberg was trying to counter the flood of negative press from “The Social Network.”

And for good reason.

After seeing a screening of the movie recently, MediaMemo’s Peter Kafka noted that “the film portrays him as an insecure jerk who screws over people and becomes a much-richer insecure jerk…He’s the bad guy in his own creation myth.”

In fact, said sources, Zuckerberg actually has been cooking up the deal since he and high-profile Newark Mayor Cory Booker started kibitzing over the idea while both attended the Allen & Co. conference in July.

From there, Zuckerberg decided it was best to flood the zone–in this case, the deeply troubled Newark school system, which had previously been taken over by the state.

Now, it will instead get a big dose of friending–um, funding–from a foundation that Zuckerberg is funding with $100 million worth of Facebook stock, which will be sold off in secondary markets as needed.

Sources said his interest in the area was apparently sparked by watching the up-and-down experience of his longtime girlfriend, Priscilla Chan, whose first job out of college was as a teacher. She is now a medical student.

It’s all an unusual bipartisan effort, with Zuckerberg working with the Democratic Booker and also New Jersey’s new Republican Governor Chris Christie.

The pair of politicians, who will formulate a plan, pushed for the announcement this particular week on “The Oprah Winfrey Show,” in order to give the topic national attention.

Winfrey has been focusing on education reform this week on her show, and the Obama administration is reportedly going to do the same in the weeks ahead.

Thus, Zuckerberg himself decided to move forward now, sources said, apparently concluding that even if a prominent movie was portraying him as the villain, he did not have to act like one in real life.

About 20 states have enacted or proposed measures that deal with teenage sexters. Generally, the legislation is aimed at treating minors in a more lenient fashion than if they were prosecuted under existing child-pornography or child-exploitation laws, which include the possibility of prison time and sex-offender status.

Since May, states including Arizona, Connecticut, Louisiana and Illinois have enacted laws that impose relatively modest penalties against minors who sext, while maintaining harsher penalties for adult offenders.

While many of the new rules make sexting punishable by small fines and short stints in a juvenile-detention facility, there is still little agreement on what the appropriate penalty is—or whether prosecutors should be involved at all.

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“My office will lead a multistate investigation–expected to involve a significant number of states–into Google’s deeply disturbing invasion of personal privacy,” Blumenthal said in a statement. “Street View cannot mean Complete View–invading home and business computer networks and vacuuming up personal information and communications. Consumers have a right and a need to know what personal information–which could include emails, web browsing and passwords–Google may have collected, how and why. Google must come clean, explaining how and why it intercepted and saved private information broadcast over personal and business wireless networks.”

Blumenthal says some 30 states have expressed concern over the matter, and he expects a number of them to ultimately join the investigation, which will determine the legality of Google’s collection of data from personal wireless networks.

Google (GOOG), for its part, insists the practice wasn’t illegal–just stupid.

While there have been politicians running for office in California before who have worked in the tech sector, there’s no doubt that the prospects for two of Silicon Valley’s more prominent execs–Carly Fiorina and Meg Whitman–represent an unusual and interesting situation in the state’s history.

With the tech sector a beacon of hope in a very rough economy and a symbol of health compared with a debt-saddled government, it’s no surprise that both candidates are touting their time as CEOs of two of California’s better known digital giants.

Whitman ran eBay (EBAY) and Fiorina helmed Hewlett-Packard (HPQ).

And, as they both did in their Republican primary races, they’re pushing that business experience very hard.

“Career politicians in Sacramento and Washington, D.C., be warned: You now face your worst nightmare,” said Whitman in her victory speech after winning the GOP primary for governor, referring to herself and Fiorina, who is vying for a Senate seat. “Two businesswomen from the real world who know how to create jobs, balance budgets and get things done.”

But will their narrative of outsider, maverick, high-tech corporate execs versus entrenched career politicians–Democratic candidates Jerry Brown and Sen. Barbara Boxer, who are facing Whitman and Fiorina respectively–play well with voters, and, more importantly, how accurate is their depiction as can-do techies?

That’s something to pay attention to, since a lot will surely be riding on their golden portrayal as business successes in the Golden State versus their opponents’ ability to paint a more cloddish picture of their corporate tenures.

And, just from a quick reading of their Web sites, both Fiorina and Whitman have to tread very carefully.

For example, the bio for Fiorina on her site notes:

“Carly served as the Chairman and Chief Executive Officer of Hewlett-Packard Company from 1999 to 2005, leading the reinvention of the legendary company, successfully steering it through the dot-com bust and the worst technology recession in 25 years. During her tenure, HP’s revenues doubled, from $44 billion to $88 billion, with improved profitability in every product category. Today, HP is the largest technology company in the world.”

That certainly–and not surprisingly–leaves out the layoffs, the myriad controversies over her leadership and, as has been depicted in much press coverage and several books, her none-too-smooth heave-ho from HP with a big fat exit payout to cushion the blow.

In fact, it has been current CEO Mark Hurd who has deservedly gotten a lot of the credit for getting HP moving again.

In addition, while HP is certainly the largest tech company in terms of employees, it is nowhere near the largest in terms of anything else that counts, such as stock market valuation.

HP’s market cap is currently $112 billion, compared with $230 billion for Microsoft (MSFT), $251 billion for Apple (AAPL) and even $168 billion for IBM (IBM).

On her Web site, the tale of Whitman is also rich in wow:

“At eBay, Meg made history. Meg steered eBay through the dot-com rise and fall that saw the vast majority of high-flying start-ups crash and burn, while eBay turned in one quarter of dramatic growth after another. When she joined eBay, the company had just $4.7 million in revenues and 30 employees; when she retired in March of 2008, ten years later, the company had nearly $8 billion in revenues and 15,000 employees worldwide–with millions of users in California alone.”

It’s all pretty much true, and throwing in California auction fans is a nice touch, too.

But it also leaves out a laundry list of problems Whitman left behind, from eBay’s slowness to innovate after its initial success, thereby almost totally missing Web 2.0, to its struggles to reinvigorate its main market business to a series of questionable acquisitions–Skype calling!–made in her decade in charge.

To be fair, any CEO tenure is a mixed bag, and there is not one tech exec who has not presided over a disaster or two.

That said, if both Fiorina and Whitman are selling themselves as Silicon Valley wunderkinds who can fix what’s broke in California, they are going to have to get ready to defend their business records over the next five months just the same as the career pols they are aiming to unseat.

$54 billion.

This according to the search sovereign itself in a paper released today quantifying its economic impact on the country, state by state.

In California, the company, which reported $23.7 billion in revenue last year, claims responsibility for more than $14 billion of economic activity, and in New York, $6.3 billion. These figures were calculated by adding the profit generated by businesses that use Google AdWords, the monies Google paid out to AdSense publishers and the in-kind grants the company doles out to nonprofits in each state.

“We conservatively estimate that for every $1 a business spends on AdWords, they receive an average of $8 in profit through Google Search and AdWords,” the company said in its report.

Which is something to think about–particularly for federal regulators concerned that Google’s growing market power is becoming anticompetitive. And that, I imagine, is the whole point of this exercise. What better way to counter perceptions that Google (GOOG) merits antitrust scrutiny than to highlight its positive effect on the national economy?

“After Gateway’s 2004 merger with eMachines, AMD attempted to revive the relationship it had enjoyed with Gateway until 2001, but experienced extremely limited success. While Gateway built one AMD-powered desktop model at the request of Circuit City, AMD remains locked out entirely of Gateway’s direct internet sales, its commercial offerings and its server line. According to Gateway executives, their Company has paid a high price for even its limited AMD dealings. They claim that Intel has beaten them into ‘guacamole’ in retaliation.”

– Excerpt from AMD’s 2005 complaint against Intel

Looks like it’s going to be a very busy fall for Intel legal. This morning, New York Attorney General Andrew Cuomo filed a federal antitrust lawsuit against the company, alleging that it violated state and federal laws with a “systematic campaign” of illegal conduct to maintain its monopoly.

At issue here, once again, is Intel’s alleged practice of using bribery and coercion to maintain its monopoly, something rival AMD complained about in its own antitrust suit against Intel (INTC) in 2005.

AMD (AMD) alleged, for example, that in 2000, Michael Capellas, then chief executive of Compaq Computer, told AMD that because of Compaq’s relationship with AMD, Intel withheld the delivery of some microprocessors he needed for servers. Capellas told AMD he would stop buying from it, saying he “had a gun to his head.”

Further, in 2004, Gateway officials are alleged to have told AMD that Intel “beat them into guacamole” in retaliation for their limited dealings with its rival. These are but two incidents in a list that includes similar alleged acts of coercion by Intel involving 38 other computer makers, distributors and retailers.

Apparently, Cuomo has found evidence of similar behavior. “Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market,” Cuomo said in a statement. “Intel’s actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices.”

After all the investor hubbub over the oh-no-they-didn’t deal between Yahoo and Microsoft starts to die down a bit, the pair are now embarking on the path that is the only way toward proving the efficacy of them joining together.

That would be getting a variety of state, federal and international regulators to say yes to the wide-ranging online advertising and search arrangement they announced last week so they can start making it work.

According to sources at both companies, a variety of filings will be made this week, including one to the Securities and Exchange Commission that should provide more details of the partnership.

When it was unveiled last Wednesday, the companies said Microsoft (MSFT) will run search technology for the two, while Yahoo (YHOO) will sell the premium search advertising.

That SEC filing could answer a number of questions some still have about the deal, such as whether there is a large break-up fee that Microsoft would pay Yahoo in case the deal is scuttled.

That’s just the outcome that Microsoft and Yahoo are trying to avoid.

“We think of it as an outreach effort to explain how we are creating a strong No. 2 to Google,” said one source close to the situation. “The main goal will be to show that a better competitor in the marketplace is a good thing.”

While the companies are prepping for opposition from Google (GOOG), sources close to the thinking at the dominant search company said it is more likely to be muted and indirect.

That’s especially true since a MicroHoo makes Google–currently under a lot more government scrutiny than ever before–look like less of a bully.

Thus, Google’s tactics would entail less direct statements and more pointing out the discrepancies between what Microsoft said when Google tried to get approval for a search deal with Yahoo last year and what it argues now.

“They will probably not be that obvious, but they will be there still,” said Microsoft CEO Steve Ballmer to me, in an off-hand remark at the software giant’s Financial Analyst Meeting last week.

It’s a game of legal chicken that Ballmer knows well.

Already, for example, Microsoft and Yahoo execs have been aggressively reaching out to major publishers and advertisers to get their staunch support.

That included calls immediately after the deal was announced last Wednesday to such execs as Martin Sorrell of the WPP Group (WPPGY) and Jeff Zucker, CEO of NBC Universal, a unit of GE (GE).

In Washington, D.C., both companies have legions of lawyers to try to make sure the Justice Department, which will review the case due to its antitrust implications, has all the information it might need.

And, more to the point, they want to avoid the debacle that took place when Yahoo and Google tried to get approval for their failed deal last year.

That deal was ended by Google after it became clear that Justice was going to fight it by arguing that top search companies hooking up hurt competition and stifled innovation.

In addition, there might be Congressional scrutiny, with possible hearings, similar to those held when the Yahoogle deal was pending, such as in the Senate Judiciary Antitrust Subcommittee.

And, of course, there are actually independent groups concerned and they have also been in contact with regulators.

“There are questions that must be answered regarding the collection and sharing of consumer data by the two companies,” said Jeff Chester, executive director of the Center for Digital Democracy, a D.C.-based group that works to promote consumer privacy and protection online, in a statement last week. “While the rationale for the deal is to provide some much needed competition to Google (and income for Yahoo), the further consolidation of the global digital advertising system should be a concern to Internet users, privacy advocates, online marketers, and competition regulators.”

Sources said Microsoft and Yahoo also plan to petition regulators in the European Union this week, which is likely to be most concerned about privacy issues involved in their union.

They will also be doing the same in other key countries worldwide, such as Korea, Taiwan and Brazil.

And, finally, given how involved state attorneys general became in beaching the Yahoo deal to partner with Google, they also will be starting outreach to key states, such as California, where Silicon Valley-based Yahoo is headquartered.

“Once again, it will be the Lawyer Employment Act of 2009,” joked one person close to the deal. “At least, that shows there is some economic benefit to this deal already.”

While we all wait in breathless regulatory anticipation, here are interviews I did at last year’s Senate hearings on Yahoogle, with lawyers from Google (David Drummond), Microsoft (Brad Smith) and Yahoo (Mike Callahan).

Incredibly, they are the very same lawyers who will be pretzeling themselves in entirely different shapes than they pretzeled themselves a year ago.

I would expect nothing less!

Here’s the video:

]]> http://allthingsd.com/20090804/yahoo-microsoft-regulatory-filings-begin-this-week-let-the-legal-game-playing-begin/feed/ 0 http://allthingsd.com/20090310/new-dell-laptop-exceeds-military-specs-for-durability-ugliness/ http://allthingsd.com/20090310/new-dell-laptop-exceeds-military-specs-for-durability-ugliness/#comments Tue, 10 Mar 2009 22:35:12 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=14624 It can survive a three-foot drop and withstand water sprayed from a fire hose. It’s sea fog-resistant. It meets military specifications for thermal shock and explosive environments. And if you hit someone with it hard enough, you’d probably kill him. What is it?

A Dell laptop, believe it or not. The Latitude E6400 XFR is Dell’s (DELL) first true entrant into the so-called “rugged” laptop category, and its an impressive one. Targeted at the military and first-responder market, the machine is encased in a chassis made of ballistic armor–one Dell claims has twice the impact strength of magnesium alloy. It’s powered by Intel’s (INTC) Core 2 Duo processor, runs Windows Vista and supports Wi-Fi, 3G mobile broadband and GPS. Perfect for military contractors, and more importantly, for the state and local governments currently lining up for billions of dollars in stimulus money. Said Dell spokesman Patrick Burns, “With the stimulus package under way, we’re getting lots of interest.” I’ll bet you are, because at $4,299, you’ll need a stimulus package to afford it.

]]> http://allthingsd.com/20090310/new-dell-laptop-exceeds-military-specs-for-durability-ugliness/feed/ 0 http://allthingsd.com/20081204/prop-8-the-musical-another-viral-video-hit/ http://allthingsd.com/20081204/prop-8-the-musical-another-viral-video-hit/#comments Thu, 04 Dec 2008 09:20:38 +0000 Kara Swisher http://kara.allthingsd.com/?p=7310 Although it was just posted on the Funny or Die comedy Web site, a new online video spoof on California’s Proposition 8 has already garnered almost one million views.

The video has a star-studded cast, all singing Marc Shaiman’s “Prop 8–The Musical,” including Jack Black (as, um, Jesus), Neil Patrick Harris, John C. Reilly, Margaret Cho, Allison Janney and others.

It’s set as a musical being presented by the Sacramento Community College Players.

Prop 8, a ballot initiative passed in the November election in California, eliminated the right of gay and lesbian people to marry by overriding a state Supreme court decision and changing the state Constitution.

It is currently undergoing legal challenge.

In any case, this video is very funny, especially the part about shrimp cocktail:

See more Jack Black videos at Funny or Die

Please see this disclosure related to me and gay marriage.

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